NEW YORK (TheStreet) -- Shares of Pacific Ethanol (PEIX) are gaining, higher by 3.44% to $11.08 Wednesday morning, as shares of the low-carbon renewable fuels producer resumed trading after a deal to buy all of Aventine Renewable Energy's (AVRW) outstanding shares in a stock-for-stock merger transaction.
Trading of Pacific Ethanol stock was halted prior to the company's announcement until 9 a.m. ET today.
Pacific Ethanol CEO said the transaction will more than double its annual ethanol production capacity and will establish Pacific Ethanol as the fifth largest producer and marketer of ethanol in the U.S.
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Separately, TheStreet Ratings team rates PACIFIC ETHANOL INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate PACIFIC ETHANOL INC (PEIX) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."